Students’ Loan Bureau still suffering from high delinquency rate
Jovan Johnson, Gleaner Writer
New data from the Students’ Loan Bureau (SLB) suggest that the institution is still struggling to cut the rate of delinquency of borrowers, despite renewed efforts to collect monies owed.
Delinquency refers to accounts which are past due for 90 days or more.
The SLB says the rate of delinquency now stands at approximately 30 per cent, the same figure that was reported last year November by the institution’s executive director, Monica Brown.
Overall, 12,000 accounts are in arrears, valued at approximately $2 billion.
A loan in arrears is defined as one that is past due for one a day or more.
Since January, the SLB has sought to ramp up its measures to force delinquent borrowers to settle their accounts.
The SLB has published the names and photographs of chronic delinquents in local newspapers.
The loan institution has also given notice that it would start providing credit information on its customers to licensed credit bureaus, which could spell the beginning of trouble for delinquent customers seeking to access credit from other institutions.
Loans are disbursed to students at a rate of nine per cent and the borrowers are required to begin repaying the loans six months after graduation.
The SLB funds approximately 30 per cent of the island's tertiary students.
An estimated 15,000 students are expected to benefit from SLB funding, valued at $4.3 billion, this academic year.
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